Indian coal-fired power stations have witnessed a build-up in inventory levels that had plunged to a three-year low as a result of the abrupt rise in power demand.
As on 24 Oct’21, coal inventories were recorded at 8.45 mn t, sufficient for five days of power generation, compared to 8.08 mn t of stocks assessed at the end of Sept’21.
Coal inventory had come down to 7 mn t levels in the first week of Oct. However, a gradual uptick in coal supplies resulted in stock replenishment.
Coal receipts at the plants to the tune of 1.93 mn t outpaced the normative requirement of 1.79 mn t assessed for 24 Oct.
Consequently, several power plants were pulled out of critical levels as evident from the reduction in the number of plants facing acute coal shortage.
Position of plants having seven or less days of coal stocks
Source: CEA| Data compiled till 24 Oct’21
Measures taken to boost inventory
Post-monsoon, domestic coal major Coal India Ltd (CIL) maintained higher coal dispatches.
The company registered coal dispatches at 1.78 mn t/day during the first 25 days of Oct against average dispatches of 1.61 mn t/day recorded in entire Sept.
The power plants were also given the provision to enhance coal supplies from alternate sources as was the case with NTPC which had commenced coal offtake from the Talabira mines of NLC in Odisha.
Besides, the power plants were also seen augmenting coal sourcing via imports, which helped them to satiate a part of their requirement.
Incidentally, contribution of imported coal in the total inventory decreased to a low of 100,400 t as on 11 Oct, which has gradually increased to 161,000 t as on 24 Oct, with higher intake of imported coal.
These efforts came handy at a time when the uptick in power generation from coal-fired power utilities resurfaced during Oct after subdued demand in Sept. Notably, the daily power output increased nearly 3%, m-o-m, to 2600 MU (million units) in the first 25 days of Oct compared to 2531 MU in the corresponding period of Sept.
Outlook
The present inventory levels are far lower than the normative stocks of 14 days which are required to be maintained at power plants. Till then, coal supplies for the non-power sector are expected to remain curtailed.
However, with the easing of the critical stock position at power plants, CIL is likely to raise the frequency of domestic coal auctions to cater to the ill-supplied end-user segments.
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